9 Step Problem Solving - Classic Airlines
Classic Airlines 9 step problem solving model
MKT/571 - Marketing
Classic Airlines 9 step problem solving model
There are many internal and external factors contributing to Classic Airline’s current crisis. Falling Stock prices, Low employee morale, rising fuel costs and declining consumer confidence are some of the challenges Classic is facing. Internal dissent among upper management and restrictive cost structures are posing a direct problem to the Marketing team. I will sort through all of the symptoms, opinions, feelings and facts to determine the real problems plaguing the company. Considering the marketing departments goals, obstacles and resources, I will use a problem- solving model to define the problem, then build solutions, implement and evaluate solutions to the problem,
Define the Problem Classics’ Customer Satisfaction, Loyalty and membership in the Classic Rewards program have substantially decreased. Classic is dealing with a loss of customer base and a decrease in activity from their most frequent flyers. Increased fuel costs and high employee salaries have driven operating expenses up, resulting in a 61 million decrease in net income from prior year. Stock prices have fallen 10% within the last year and employee morale is the lowest it’s ever been. Following September 11th Classic along with the entire airline industry, experienced a major decline in business. Classic overestimated the turnaround of the slump and expanded operations prematurely resulting in a restrictive cost structure and a competitive disadvantage against younger airlines. This allows younger airlines to break into the market taking bigger risks to offer customers what they want. Competitors can offer lower prices that Classic would not be able to match without taking a loss. In addition Amada Miller, CEO has stated that there is no room for Classic to lower its flight prices. At the suggestion of the former Chief marketing Officer Amanda Miller
MKT/571 - Marketing
Classic Airlines 9 step problem solving model
There are many internal and external factors contributing to Classic Airline’s current crisis. Falling Stock prices, Low employee morale, rising fuel costs and declining consumer confidence are some of the challenges Classic is facing. Internal dissent among upper management and restrictive cost structures are posing a direct problem to the Marketing team. I will sort through all of the symptoms, opinions, feelings and facts to determine the real problems plaguing the company. Considering the marketing departments goals, obstacles and resources, I will use a problem- solving model to define the problem, then build solutions, implement and evaluate solutions to the problem,
Define the Problem Classics’ Customer Satisfaction, Loyalty and membership in the Classic Rewards program have substantially decreased. Classic is dealing with a loss of customer base and a decrease in activity from their most frequent flyers. Increased fuel costs and high employee salaries have driven operating expenses up, resulting in a 61 million decrease in net income from prior year. Stock prices have fallen 10% within the last year and employee morale is the lowest it’s ever been. Following September 11th Classic along with the entire airline industry, experienced a major decline in business. Classic overestimated the turnaround of the slump and expanded operations prematurely resulting in a restrictive cost structure and a competitive disadvantage against younger airlines. This allows younger airlines to break into the market taking bigger risks to offer customers what they want. Competitors can offer lower prices that Classic would not be able to match without taking a loss. In addition Amada Miller, CEO has stated that there is no room for Classic to lower its flight prices. At the suggestion of the former Chief marketing Officer Amanda Miller
Cited: University of Phoenix. (2012). MKT/571 Marketing Classic Airlines Exhibit B. Kotler, P., & Keller, K. L. (2006). Marketing Management, (12th Ed.). Upper Saddle River: Prentice-Hall, Inc. A Pearson Education Company. University of Phoenix. (2012). MKT/571 Marketing - Scenario: Classic Airlines.